Microsoft to Invest $80 Billion in AI-Focused Data Centers by 2025

Investing.com -- Microsoft (NASDAQ:MSFT) has announced plans to invest $80 billion in the construction of data centers capable of handling artificial intelligence (AI) workloads by the fiscal year 2025. A majority of this investment, more than half of the total amount, will be allocated to projects within the United States. The company's announcement comes amid a climate where tech companies are heavily investing in Nvidia's graphics processing units. These units are used to train and run AI models. The race for AI among companies began with the rapid proliferation of OpenAI's ChatGPT assistant, which was launched at the end of 2022. Microsoft reported capital expenditures and assets acquired through financial leasing amounting to $20 billion worldwide in the first quarter of the fiscal year 2025. Of this, $14.9 billion was spent on property and equipment. Microsoft's Chief Financial Officer Amy Hood stated that capital expenditures are expected to increase sequentially in the financial second quarter.

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